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(A) Each bidder responding to invitations for bids for construction contracts estimated to exceed $30,000.00 or to other invitations for bids wherein bid security is required shall submit required security with his bid.
(1) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the local public agency to exceed $100,000.00. Bidder’s security shall be a bond provided by a surety company authorized to do business in the Commonwealth of Kentucky, or the equivalent in cash in a form acceptable to the City of Ashland. Nothing herein prevents the requirement of such bonds on construction contracts under $100,000.00 when the circumstances warrant.
(2) Bidder's security shall be in an amount equal to at least 5% of the amount of the bid. The city may require that bidder's security be furnished in an amount greater than 5% of the amount of the bid.
(3) When a bidder fails to comply with the security requirement of an invitation for bids, his bid shall be rejected except under exceptions provided in these regulations.
(B) Every contractor to whom it is proposed to award a contract for construction services costing more than $30,000.00 shall, prior to the award of the contract, give a bond or bonds to the city as obligee, in a form satisfactory to the city and executed by a surety company authorized to do business in this state. Bond or bonds shall be in a penal sum equal to 100% of the contract price, as it may be increased, and shall bind the contractor, as principal, and the surety to the performance of the contract according to the terms, conditions, and specifications thereto, and to the payment of all costs for labor, materials, equipment, supplies, taxes and other proper charges incurred or to be incurred in the performance of the contract.
(C) Every contractor to whom it is proposed to award a contract for the purchase of commodities, supplies, equipment or services shall, when required by the terms of an invitation for bids, request for proposals, give bond with surety satisfactory to the city in a penal amount not to exceed 100% of the contract price. The actual amount of the bond required will be that determined by the City Manager as sufficient to assure faithful performance of the contract by the contractor according to its terms.
(D) A contract shall not be awarded to any contractor who fails or refuses to give bond when required as provided by KRS 45A.435 and this section.
(E) All bonds required by this subchapter shall be in such form as is directed by or acceptable to the City Manager.
('83 Code, § 36.54) (Ord. 52-1979, passed 12-6-79; Am. Ord. 104-1980, passed 10-16-80; Am. Ord. 34-1987, passed 4-21-87; Am. Ord. 61-2019, passed 4-25-19)
Contract performance and payment bonds, see KRS 45A.435
Bid bonds, see KRS 45A.430
Bond forms; filing and copies, see KRS 45A.440